MindChamps PreSchool (CNE) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was $34.4m, down 2% YoY; profit before tax was $1.5m vs $8.0m and net profit was $1.4m vs $7.3m.

• Prior-year earnings included a $2.9m gain from divesting subsidiaries; no divestment gain was recorded in H1 2024.

Financial highlights

• Gross profit was $18.5m vs $19.8m as cost of sales rose 3% to $16.0m.

• Administrative expenses increased 5% to $15.3m, while finance expenses fell 12% to $1.0m following debt repayments.

• Operating cash flow was $5.1m; investing activities used $3.0m and financing activities used $4.7m.

Outlook and guidance

• Plans focus on cost control and higher occupancy across centres amid workforce shortages and rising costs and salaries.

• Overseas franchise expansion will continue, with greater focus on Australia, to support more sustainable growth.

• Positive operating cash flows are expected for at least the next 12 months, based on business plans and operating budgets.